The Construction SEO has been signed after being approved by the Oireachtas.
Labour Senator Ged Nash said it is a "major victory" for workers and a landmark event in the fight for decent work for all.
He said: "Today 50,000 construction workers can be assured of better terms and conditions because of actions undertaken by the Labour Party.
"It has been estimated that this will mean construction workers will see their wages rise by roughly 10% across all grades, based on the rates that had applied in 2013.
"This is the first sectoral employment order that has been implemented and is a major victory for workers. It replaces the old registered employment agreements that were ruled unconstitutional by the Supreme Court in 2013.
"I hope it will now lead to such orders across other parts of the economy to ensure that workers can negotiate increases in their wages and betters conditions at work, and prevent a race to the bottom by unscrupulous employers."
SIPTU the union welcomed the implementation of the SEO.
TEAC Division Organiser, Greg Ennis, said: "The SEO establishes legally binding new minimum rates of pay for the various grades of construction worker. These are for the craft grade €18.93 per hour, for technical operatives (Grade A/Category 2) €18.36 per hour, skilled and semi-skilled operatives (Grade B and C/Category 1) €17.04 per hour and for new entrants €13.77 per hour.
"In general this sees an increase of approximately 10% on the rates applicable to all grades under the Registered Employment Agreement (REA) for the industry which was valid until 2013, when it was struck down by the Supreme Court. In the case of new entrants the rate stays the same. For crane operatives the 10% extra is in addition to an increased allowance, which in effect amounts to a 25% increase in their basic pay, which was secured for them by SIPTU from 5th June, 2017. The SEO also makes progress in relation to sick pay and pension entitlements for our members."
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